Behnam Reiterates Call for Congressional Action on Crypto Regulation During House Committee Hearing

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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March 6, 2024 16:42 EST

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Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam has reiterated his call for Congress to pass legislation clarifying crypto regulation. The call for congressional action was presented during Wednesday’s hearing before the House Agriculture Committee.

Crypto Regulation is Lagging Behind

Behnam emphasized the situation’s urgency, citing the rapid growth of the crypto market and its increasing mainstream acceptance. He highlighted the need for clarity on Bitcoin’s regulatory status, noting its major market share alongside Ethereum.

He urged Congress to address the regulatory gap swiftly, emphasizing that cryptocurrencies, especially Bitcoin, are here to stay.

Amid increasing scrutiny and lawmaker interest, Behnam’s call for action was prompted by inquiries into the CFTC’s budget.

Lawmakers also questioned him about the status of the Financial Innovation and Technology Act for the 21st Century (FIT Act), a bill to establish a crypto regulatory framework.

Behnam further challenged Congress, stating that the CFTC could establish a regulatory framework within 12 months if the FIT Act is passed. This framework would provide much-needed clarity and oversight to the rapidly evolving market.

The bill hasn’t yet made it to a floor vote.

Congress Scrutinizes Crypto Act

The chairman’s remarks reflect a growing consensus among regulatory bodies and lawmakers regarding the need for clear and comprehensive crypto regulations.

Congressional scrutiny on cryptocurrency regulation is expected to intensify in the coming months as lawmakers seek to address the regulatory challenges posed by the growing cryptocurrency market.

The lack of clear guidelines poses risks for investors and market participants, including fraud and market manipulation.

Additionally, the absence of a comprehensive regulatory framework for cryptocurrencies could have broader implications for the financial system.

As cryptocurrencies become more integrated into the traditional financial system, clear and consistent regulation becomes increasingly important to ensure financial stability and protect consumers.

Behnam’s call for congressional action highlights Congress’s critical role in shaping the regulatory environment for cryptocurrencies.

By passing crypto regulation legislation that provides clarity and oversight, Congress can help to ensure the long-term viability and integrity of the cryptocurrency market while fostering innovation and protecting investors.